This document discusses different levels of strategy, including corporate strategy, business strategy, and functional strategy. Corporate strategy involves top-level decisions about the overall scope and direction of a corporation. It occupies the highest decision-making level. Corporate strategies include stability, expansion, retrenchment, and combinations of those. Expansion strategies involve concentrating resources, diversifying, integrating operations, cooperating with competitors, and internationalization. Retrenchment strategies are turnaround, divestment, and liquidation. Business strategy details how a firm provides value to customers within a specific industry. Common business strategies are cost leadership, differentiation, focused low cost, focused differentiation, and integrated low cost/differentiation. Functional

1. LEVELS OF STRATEGY
By:
AADITYA KOUL
(02-MBA-16)

2. PRESENTATION FLOW

6. CORPORATE STRATEGY
• Top management’s overall plan for
the entire organisation and its SBUs
• The overall scope and direction of
a corporation and the way in which
its various business operations work
together to achieve particular goals
• Corporate level strategy occupies
the highest level of DECISION
MAKING
• The nature of decision tends to be
more value oriented and conceptual
than the Business Level and
Functional Level

7. CORPORATE LEVEL STRATEGIES
STABILITY
• An organization
continues to do
what it is
currently doing
EXPANSION
• Adopted by an
organization
when it
attempts to
achieve a high
growth as
compared to its
past
achievements
RETRENCH
MENT
• Often used in
order to cut
expenses with
the goal of
becoming a
more financially
stable business
COMBINATION
• Combination of
stability, growth &
retrenchment
strategies
adopted by an
organisation,
either at the same
time in its
different
businesses, or at
different times in
the same business
with the aim of
improving its
performance.

8. STABILITY STRATEGIES
• The No-Change Strategy is a conscious decision to do nothing
new.The firm will continue with its present business definition
• The Pause/Proceed with Caution Strategy is a
stability strategy followed when an organization waits and
looks at the market conditions before launching the full-
fledged grand strategy.
• The Profit Strategy is followed when an organization aims to
maintain the profit by whatever means possible. Due to lower
profitability, the firm may cut costs, reduce investments, raise
prices, increase productivity or adopt any methods to
overcome the temporary difficulties.

9. • The Expansion through Concentration involves the investment of resources in the
product line, catering to the needs of the identified market with the help of proven
and tested technology
• The Expansion through Diversification is followed when an organization aims at
changing the business definition, i.e. either developing a new product or expanding
into a new market, either individually or jointly
• The Expansion through Integration means combining one or more present
operation of the business with no change in the customer groups.This combination
can be done through a value chain.
• The Expansion through Cooperation is a strategy followed when an organization
enters into a mutual agreement with the competitor to carry out the business
operations and compete with one another at the same time, with the objective to
expand the market potential.
• The Expansion through Internationalization is the strategy followed by an
organization when it aims to expand beyond the national market

10. • The Turnaround Strategy is backing out or retreating from the decision
wrongly made earlier and transforming from a loss making company to
a profit making company
• The Divestment Strategy is the opposite of investment; wherein the
firm sells the portion of the business to realize cash and pay off its debt.
Also, the firms follow the divestment strategy to shut down its less
profitable division and allocate its resources to a more profitable one
• The Liquidation Strategy is the most unpleasant strategy adopted by
the organization that includes selling off its assets and the final closure
or winding up of the business operations

11. EXAMPLE OF CORPORATE STRATEGY

12. BUSINESS STRATEGY
• Detail actions taken to provide value to customers and
gain a competitive advantage by exploiting core
competencies in specific, individual product or service
markets
• Concerned with a firm's position in an industry, relative to
competitors and to the five forces of competition

14. • Cost Leadership – Organizations compete for a wide customer based on
price. Price is based on internal efficiency in order to have a margin that will
sustain above average returns and cost to the customer so that customers will
purchase your product/service.This can include:
 Building state of art efficient facilities (may make it costly for competition
to imitate)
 Maintain tight control over production and overhead costs
 Minimize cost of sales, R&D, and service.
• Differentiation -Value is provided to customers through unique features and
characteristics of an organization's products rather than by the lowest price.
This is done through high quality, features, high customer service, rapid
product innovation, advanced technological features, image management,
etc. (Some companies that follow this strategy: Rolex, Intel, Ralph Lauren)

15. • Focused Low Cost- Organizations not only compete on price, but also select
a small segment of the market to provide goods and services to. For example
a company that sells only to the U.S. government
• Focused Differentiation - Organizations not only compete based on
differentiation, but also select a small segment of the market to provide
goods and services.
Focused Strategies - Strategies that seek to serve the needs of a particular
customer segment
Companies that use focused strategies may be able serve the smaller segment
(e.g. business travellers) better than competitors who have a wider base of
customers
• Integrated Low-Cost/Differentiation Strategy
This new strategy may become more popular as global competition increases.
Firms that use this strategy may see improvement in their ability to:
 Adaptability to environmental changes.
 Learn new skills and technologies
 More effectively leverage core competencies across business units and
products lines which should enable the firm to produce produces with
differentiated features at lower costs.
Thus the customer realizes value based both on product features and a low price.
Southwest airlines is one example of a company that does uses this strategy.

16. EXAMPLE OF BUSINESS STRATEGY

17. FUNCTIONAL STRATEGY
• An area of operational management based on a specific department
or discipline within an organization, such as human resources,
finance or marketing
• Enables a company to deal with the nuts and bolts of its long-term
organizational plan and short-term goals and objectives
• Customized to a specific industry or strategic business unit (SBU) and
is used to back up other corporate and business strategies.

24. FUNCTIONAL LEVEL STRATEGY EXAMPLE